Binnopharm

Binnopharm is a Russian full-cycle pharmaceutical company with an in-house R&D division. Binnopharm operates two advanced pharmaceutical plants in Moscow region that comply with international Good Manufacturing Practice (GMP) standards and produce six types of dosage forms: ampoules, syringes, aerosols, pills, capsules and solutions. The company produces and develops new medications in several treatment groups: pulmonology, neurology, cardiology, gastroenterology and infectious diseases.

Business description

In 2016, Binnopharm continued its strategic shift away from public procurement towards private-sector sales. The following steps were taken to refocus the business.

Opening of a 400 sq m R&D centre with seven laboratories. The centre employs over 30 people, many with doctoral degrees. More than 20 drugs are now at various stages of development and registration.

Active promotion of proprietary products (Noben, Salbutomol, Beclomethasonum, Theopec, Combipec) in the retail segment. The company signed 70 contracts with pharmacy chains (representing 32% of the market) covering 11,522 pharmacies. Binnopharm’s products are now available in every fourth pharmacy in Russia.

Acquisition of LLC Alpharm, a manufacturer of two medications for the pharmacy segment, Kipferon and Prostopin. The acquisition allowed Binnopharm to enter the OTC drugs market and secure potential commercial advantages by using its own interferon substance for manufacturing Kipferon.

Obtaining exclusive rights for promotion and sale of third-party products in Russia. Licence agreements were signed with Germany’s Medice and Russia’s BIS, giving the company distribution and promotional rights for efficient and high-quality drugs in segments including neurology, pediatrics, and anti-viral and cold-relief medications.

As a result, proprietary drugs accounted for 78% of revenue, up from 43%, sales of proprietary drugs in the commercial segment rose from 29% to 47%.

The main goal for 2017 is to increase the share of revenue derived from the commercial sector to 90%. The company expects proprietary products to account for 65% of sales, and products sold under licence agreements with third-party manufacturers for 35%.